KARACHI: The chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), Saleem Mukati, has called on the State Bank of Pakistan (SBP) to consider reducing the policy rate at its upcoming Monetary Policy Committee meeting. The request aims to boost economic activity and address the capital shortage affecting the business sector.

According to Pakistan Chemicals and Dyes Merchants Association, Mukati highlighted the challenges posed by the current high policy rate, which he described as a significant obstacle for businesses. He advocated for a reduction of the rate to single digits, suggesting that this could positively impact the national economy by invigorating industry and trade.

In his statement, Mukati emphasized that the global economic climate remains uncertain, with Pakistan's businesses and industries facing severe economic challenges. He argued that raising interest rates as a means to control inflation is ineffective and burdensome for traders and industrialists.

The PCDMA chairman urged the SBP governor to listen to the business community's concerns and adopt a strategy of lowering interest rates to foster economic stability. Mukati asserted that such a measure would not only enhance industry and trade but also create new employment opportunities as economic activity accelerates, thereby alleviating financial pressures on businesses.

Mukati expressed optimism that the Monetary Policy Committee would heed the business community's appeals and make a favorable decision for economic recovery by considering a significant reduction in the policy rate.